Wednesday, February 4, 2009

Five Deal Killers in Saline real estate

No matter the condition of the real estate market, you’ll want to avoid these five deal killers in Saline real estate.
  1. Skipping the pre-approval process. You do not want to pick out your dream home, tell everyone about the home you are buying, and spend money for the appraisal and inspections, only to find out that you are not eligible for a mortgage to pay for it. Do you know what your new dream home is going to cost you a month? I’ve written before that mortgages are still available in Saline. Let’s be absolutely certain that you have been pre-approved for your mortgage, so you’ll know exactly what you can afford!
  2. Not understanding what you are signing. The offer to purchase that you sign is a legally binding contract. If you are selling, the buyer can force you to sell. If you are buying, the seller could sue you for any loss they incur as a result of your not completing the purchase of their home. It is a good idea to talk with an attorney BEFORE you sign the offer to purchase. Make sure that your purchase offer expresses completely your understanding of the agreement. In God we trust – everything else must be in writing, to be sure that you can enforce your agreements.
  3. Letting Emotions override the facts. Never let your excitement over any Saline home or condo cloud your vision. You can jump up and down with excitement AFTER you get back in your car, or once the deal closes. Otherwise, the seller will see your enthusiasm, and take advantage of it. Trust me, it happens!
  4. Poor timing. If you’re considering a home involved in a short sale, give yourself a few extra months to complete your transaction. The bank you want to buy from may take weeks, or even months, to accept your offer. There could be hundreds of other possible delays. If you are a first time buyer, you may want to time your move with the expiration of your lease – but remember that it is a whole lot easier to pay for one extra month of rent at the end of your lease than to try to find a place to live for a month while waiting for your “short sale” deal to close.
  5. Missing the whole picture. The wisest investor I know taught me early that he never made money when he sold a property – he made money when he bought the property. For that reason, think about when you will sell your Saline home or condo before you buy it. For example, a one bedroom home or condo might be great for you, but there’s a limited market for re-sale, which may add to your time to eventually sell it, or it may result in a reduced market value when you sell. Think about your property taxes, commute times to work and conveniences, the quality of the local schools, deed restrictions (if the property is in a homeowner’s association), and whether the home will fit your needs five, ten, or twenty years from now. Drive by the home at various times of the day - a quiet street during the day may be a zoo at night, or traffic might make getting to or from your home a challenge. Not being able to back out of your driveway in the morning can sure make for a bad start to each day!

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If you have questions about your specific situation, or if you’re considering buying any Saline real estate, you owe it to yourself to take advantage of my experience in the Saline market. I’d be happy to meet with you! Just give me a call at (734) 476-2063, or send an e-mail, “Vance (at) SalineMichiganRealEstate (dot) com”.

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